Compared to just a few years ago, doing business in 2022 has drastically changed. There are a number of new risks business now face, and that has caused uncertainty for many. It’s important that you understand these risks and how they’ll impact your business to make sure your insurance will cover you should any issues arise.
Climate change
New Zealand is already facing frequent weather events around the country as a result of climate change. These changes, including rising sea levels, storm activity and increased rainfall could have a big impact on businesses.
Extreme weather can cause loss of equipment, property and stock so it’s important to consider what a recovery plan may look like in the event of a natural disaster. Weather events may also result in increased premiums, excesses or even denial of cover for high-risk areas.
Underinsurance and the risk of inflation
Small businesses can often be caught in the underinsurance trap; with inflation being at a 30-year high, you don’t want to be in a position where you’re not able to cover the new, higher cost. It’s important to review your business assets every few months to make sure they are reflected accurately in your cover. You can check in with your broker to make sure your business is adequately insured.
Supply chains and business interruption
Material shortages are now biting the construction industry hard with cost blowouts and project delays. Extended lockdowns, increasing pressure on transport networks, less air freight capacity, and shipping disruptions have meant timber, fixtures and fittings, and structural steel are in short supply.
These circumstances have caused plenty of issues for companies and their customers, so having the correct cover in place and staying in touch with your broker is key during this time. Check out our blog on how the building material shortage might affect your insurance cover to learn more.
Cyber risk
Cyber threats are an ever-evolving risk as the methods and technologies used to attack systems are constantly evolving. Cyber attacks can come from a range of avenues including payroll systems, backup data services and software platforms.
With remote work becoming more normalised after the pandemic, staff are accessing files from home which can reveal vulnerable systems – this is where it’s useful to speak to an adviser to discuss cyber insurance options.
Want to chat to our friendly team about making sure your business is covered? Get in touch today.